Attachment 19 - MJU-76 Ordering Procedures.pdf

MJU 76 ORDERING PROCEDURES UNDER MULTIPLE AWARD CONTRACT

1) One or more delivery orders (DOs) may be issued during the life of this contract. In accordance with the Federal Acquisition Streamlining Act (FASA), FAR 16.505(b)(2)(i), Exceptions to the fair opportunity process, and DFARS 216.505-70(b), the CO will provide all awardees a “fair opportunity” to be considered for each order in excess of $3,000 unless one of the conditions below applies:

A. The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

B. Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

C. The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

D. It is necessary to place an order to satisfy a minimum guarantee.

E. For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

2) The Government reserves the right to limit the quantity of flares for any awardee that does not meet the contracted quantity required on any previously awarded delivery orders under this IDIQ.

Any contractor delay in production and delivery greater than 45 days may require a new First Article at the contractor’s expense. This will not apply to excusable delays per FAR 52.249-14.

The Government will inform the awardee prior to award of the intended awarded quantity amount and request that the offeror confirm their ability/capacity to complete the order within the period of performance. Any source who is unable to produce and deliver the quantity awarded due to a limited production capacity for the given Period of Performance may have the excess quantity of units for that specific order reduced to the known or given production capacity at the time of award.

The Government may offer the remaining amount to be put onto another source’s delivery order.

3) The award of future MJU 76 delivery orders for production will follow the ordering procedures listed below:

A) Each awardee will be provided a pricing table with a request for order proposal. The pricing table will require each awardee to propose unit pricing on given quantity ranges.

B) The Government will award a percentage of each delivery order to each awardee based on the proposed Total Evaluated Prices (TEP) submitted in response to the Fair Opportunity Proposal Request (FOPR). The split percentages identified in Table 1 will be in effect for all delivery orders against the basic contracts throughout the entirety of the contract. The total dollar amount of future delivery orders will be based on the available budget at the time each delivery order is placed.

C) The total evaluated price will include the proposed unit prices in the “TEP Worksheet” and the quantity ranges detailed in CLINs 0004 and 0005. For CLINs 0004 and 0005 the Government will utilize pre-determined notional quantities for the listed quantity bands for all ordering periods.

Notional quantities are a quantity within the price bands lower and upper quantity range. Notional quantities may or may not be applied to all the quantity bands for the TEP calculation. The notional quantities will not be disclosed to the Offerors. The TEP calculation will be computed as follows: 1) the Government will multiply the listed quantity by the proposed unit price from each contractor’s proposed prices in selected quantity bands; 2) the Government will then multiply the pre-determined notional quantities by the offeror’s proposed quantity band unit price; 3) the Government will then sum the extended prices of each notional quantity, this summation constitutes the TEP.

Example of TEP Calculation:

Description Type Lower Quantity

Upper Quantity

U/I Notional Quantity

Awardee Unit Price

Extended Price

Production Order -

MJU-76/B

Price Band 1

FFP 1 5 EA

$40

Price Band 2 FFP 6 10 EA

$35 Price Band 3 FFP 11 20 EA 15 $30 $450 Price Band 4 FFP 21 30 EA

$25

Price Band 5 FFP 31 40 EA

$20 Price Band 6 FFP 41 50 EA $15 Price Band 7 FFP 51 60 EA 55 $10 $550

TEP= 15x$30= $450 +55x$10= $550

TEP = ($550+$450) = $1,000.00

D) The Government will split award amounts on each delivery order based on the difference between each Offeror’s TEP percentage as described in the following:

1. In the event two offers are submitted in response to a FOPR, the split order award amounts will be based (as close to) on the percent difference in TEP between each contractor in Table 1 below.

Table 1 Difference in TEP Quantity Split by Percentage of Units Low Offeror High Offeror <5% 55% 45% ≥5% <15% 60% 40% ≥15% <25% 65% 35% ≥25% <35% 70% 30% ≥35% <45% 75% 25% ≥45% <55% 80% 20% >55% 100% 0%

Two Offer Example:

Offeror #1 TEP: $1,150 Offeror #2 TEP: $1,000 The difference in TEP between offeror #1 and offeror #2 is 15% (($1150- $1000)/($1000*100) which would result in a 65/35 (see Table 1) split with offeror #2 receiving 65% of the total amount in budget dollars and offeror #1 receiving 35% of the total amount in dollars. In this example, if the total amount of budget dollars equals $1,000,000, the order amounts would be as follows:

Offeror #1: $350,000 Offeror #2: $650,000

The percentage difference in calculated TEP is determined as follows: (highest-price minus, lowest price divided by the lowest price multiplied by 100). The percentage difference in the calculated TEP will be rounded to the nearest whole number. When calculating the total quantity of flares based off of the order amount the government will round to the nearest whole flare and/or pallet.

4) The award of future MJU 76 source directed delivery orders will follow the ordering procedures listed below:

The procuring contracting officer (PCO) will issue a RFP to the designated source per the countries Letter of Offer and Agreement (LOA)/ International Agreement of Competitive Restrictions (IACR).

The PCO will request pricing and conduct negotiations in accordance with applicable regulations.

The sole offeror will be required to provide certified cost or pricing data on any proposal exceeding the threshold stated in FAR 15.403-4(a)(1), or other than certified cost or pricing data if the proposal does not meet the threshold stated in FAR 15 for certified cost and pricing data.

These same procedures will be followed in the event only one awardable offer is submitted in response to a competed delivery order IAW DFARS 216.505-70.

5) Performance can be authorized under this contract only by issuing individual orders signed by the PCO. Orders shall be issued by the PCO in writing and shall be dated and numbered. Orders will set forth as applicable (1) the supplies, data, or other items being ordered and include attachments, (2) the quantities to be furnished, (3) delivery dates, (4) packing and shipping instructions, and (5) funds obligated. An order is considered “issued” when the government electronically signs and distributes the order into the Electronic Document Access (EDA) System. The issued order will then be electronically delivered to the contractor’s representative via email. Order modifications thereto may be issued only by the PCO or by the administrative contracting officer (ACO).

6) These ordering procedures do not guarantee the contractor issuance of any delivery order above the minimum award amount guarantee for this contract.